Azerbaijani insurer expects to increase fees on reinsurance to 20 percent
Azerbaijan, Baku, Feb. 3 / Trend A. Akhundov /
Azerbaijani insurance company Pasa Sıgorta expects to increase fees on reinsurance by 15-20 percent in 2012, the chairman of the board of the company Nofel Rzayev told Trend today.
"In 2011, the amount of reinsurance operations remained at the level of 2010 [half a million manat], although we expect growth," he said. "In 2012 we aim to achieve reinsurance revenue growth of 15-20 percent. There are specific tasks."
As of late 2011, the company planned to collect 700,000 manat on reinsurance, but later it was forced to change the forecast downwards.
"Azerbaijan reduced the volume of local reinsurance," he said earlier. "Local insurance companies have recently started to work with foreign re-insurers. In this regard, we have changed the forecast."
The growth of the reinsurance company occurred in parallel with an increase in the capitalization of the company.
Rzayev said that Pasa Sıgorta, which is the most capitalized in the Azerbaijani insurance market, plans to raise the authorized capital in 2012.
"We will increase the share capital in 2012," he said. "However, the Board of Directors has not made a decision yet. The capital will be raised through the revenue and additional capital."
At present, Pasa Sıgorta's limit retention on one risk exceeds 2.5 million manat.
"This means that we can keep the first 2.5 million manat of risk on one subject of insurance and others - to pass on reinsurance," Rzayev said earlier.
He said that the company can accept big risks from partner insurance companies, without limitation, holding the first 2.5 million manat from the accepted risk and by placing the risk on "the chain" at the local or the international reinsurance markets.
Pasa Sıgorta, a member of the Pasa Holding, was registered on March 3, 2006. It provides services to corporate and individual clients on 30 types of insurance. The authorized capital amounts to 30 million manat. Pasa Sıgorta is a leader in terms of the capitalization volume in country's insurance market.
Besides Pasa Sıgorta, reinsurance services in Azerbaijan are rendered by the only reinsurance company AzRe.
The official exchange rate is 0.7863 AZN/USD on Feb. 3.